Predictive Signs of Future Giving
A fundamental belief held by most of us is that the more we know about prospects or donors the better we’re able to fashion a strategy for building relationships and hopefully winning or upgrading the size of their commitment. The wealth screening industry is built on that belief.
What many folks may not understand as clearly is that beyond measuring financial capacity or “wealth” many types of data provided by the wealth screeners and other data firms provide valuable insight into the likelihood that a prospect or donor will make a contribution.
In a fascinating Infographic titled 7 Types of Donor Data that Need to Be Part of Your Next Wealth Screening, Richard Smith of the wealth screening firm DonorSearch outlines the predictive power of various types of information about donors.
According to DonorSearch, did you know that…
Based on past political donations, the likelihood of future charitable giving increases:
- 14 times for individuals who have given $2500+ to political campaigns;
- 6 times for individuals who have given $1000-$2499 to political campaigns;
- 6 times for individuals who have given $500 to $999 to political campaigns.
Philanthropic giving to other nonprofit organizations is the second most predictive sign of future giving.
- With a donation of $100,000+, the likelihood of future giving increases 32 times;
- With a donation of $50k-100K+, the likelihood of future giving increases 25 times;
- With a donation of $10K – $25k the likelihood of future giving increases 10 times.
Real estate ownership is another valuable predictor.
- Individuals owning real estate valued over $2 million are 17 times more likely to donate than the average person;
- Individuals owning real estate valued at $1 million-$2 million are 4 times more likely to donate than the average person;
- Individuals owning real estate valued at $750k to $1 million are 2 times more likely to donate than the average person.
AND … some of the most important data involving probability resides right on your own database.
- Did you know? 78% of planned giving donors gave 15 or more gifts to nonprofits named in their wills during their lifetimes according to DonorSearch.
Take advantage of the obvious reality that donors most likely to donate in the future are those who have already donated.
Click here to see enlarged the Infographic.
What data have you found helpful in predicting future giving?
Roger
3 responses to “Predictive Signs of Future Giving”
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
Read Full Answer
I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
Read Full Answer
Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
Read Full Answer
Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
Read Full Answer
There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
Read Full Answer
I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
Read Full Answer
Roger,
Thanks for this great article heading into the Labor Day Weekend 2015,gives some great food for thought about the donors right in our back yard,will be doing some research over the next few days!!
Gary Bukowski CFRE
This is a very interesting little infographic. But I have a VERY BIG PROBLEM with it.
It perpetuates a desire among fundraisers that needs to stop if they really want to raise big dollars. That desire… SPENDING TOO MUCH TIME NOODLING DATA!
Before wasting so much time and money on predictive analytics, nonprofits should simply survey their supporters, advocates and volunteers. It’s much cheaper than buying screenings and you’ll capture better, more actionable data. Plus, if done properly, the survey will result in donations instantly that more than pay for the investment in the approach.
For greater efficiency and effectiveness (two things donors want you to focus on), data screening should only be done on lists that have been surveyed properly.
This is how for-profits have been doing it for years. It absolutely confounds me that nonprofits and fundraisers noodle data so much instead of simply surveying those who are closest to their missions. Maybe it’s because the data companies are so good at selling it to them?
If a person attends a religious service weekly, he or she is 9x more likely to include a nonprofit in their estate plan!